Georgiana Silvestro of Fallbrook expected her electric bill to be a bit higher because of the extended periods of high temperatures the region has experienced this summer but she was not prepared for her most recent monthly statement from San Diego Gas & Electric.

“I was livid, absolutely livid” said Silvestro, who lives with her 73-year-old husband and two dogs in a 3-bedroom, 3-bath, 2,400-square-foot house.

The bill came to $656 — almost 50 percent higher than the previous month — and included a $200 surcharge for going over the residential monthly baseline of energy usage for the area where the Silvestros’ home is located.

“This is so unfair,” Silvestro said. “It’s 105 degrees in Fallbrook and I needed to put on the AC … I think it’s just cruel.”

Silvestro’s anger has been shared by a number of homeowners and commercial customers across SDG&E’s service territory, especially in desert and inland communities who have suffered through the sweltering summer of ‘18.

San Diego is famous for its mild weather but prolonged periods of high temperatures led to the area posting the hottest August on record and the second driest rainfall season on record, dating back to 1850.

SDG&E has been feeling the heatas well — from many of its customers.

“We recognize the challenges the weather is creating for our customers in terms of them using a lot of energy and we're working towards solutions to help maximize the value of their energy bill,” said Wes Jones, SDG&E communications manager.

What about that expensive surcharge that hit Silvestro and other customers?

It’s related to the “baseline allowance” commonly seen on Page 2 of a residential customer’s statement. The baseline establishes how many kilowatt-hours of electricity a home is deemed to need each month.

The baseline is determined by the “climate zone” you live in — coastal, inland, mountain or desert — as well as whether you are strictly an electric customer or whether you use electric and gas.

During the summer months of June 1 through Oct. 31, the baseline increases as energy demand rises across the state.

Customers in a standard SDG&E tiered billing system pay 27 cents per killowatt-hour in the summer and 23 cents a kilowatt-hour in the winter. If usage exceeds 130 percent of the baseline, the price then goes up to 48 cents per kilowatt-hour in the summer and 40 cents in the winter for that tier.

But if usage exceeds 400 percent — or four times the baseline amount — the rate jumps to 55 cents a kilowatt-hour in the summer and 47 cents a kilowatt-hour in the winter. This is considered the “high usage charge.”

Jones said the California Public Utilities Commission (CPUC) instituted the charge as a way to encourage customers to conserve energy. It applies to all ratepayers serviced by the state’s three big investor-owned utilities — SDG&E, Pacific Gas & Electric and Southern California Edison.

The high usage charge went into effect last November but its larger impacts were not felt until this summer when temperatures soared. SDG&E officials expected the surcharge to affect about 71,500 ratepayers but the hot weather has boosted that number to almost 81,000, which represents almost 6 percent of SDG&E’s 1.4 million residential customers.

Silvestro’s home used 1,511 kilowatt-hours for the billing period between July 20 and Aug. 20, she said. The couple’s monthly baseline is 313 kilowatt-hours per month. The Silvestros’ bill the previous month came to $442.

“The money is way too much,” Silvestro said.

SDG&E denies it is gouging customers.

According to state law, utilities cannot profit by selling more electricity to customers, even during periods of high energy use. The cost of electricity is a direct pass-through to ratepayers’ bills.

But California does have high electricity prices compared to the rest of the country, and within the state, SDG&E charges more than California’s two other investor-owned utilities — Southern California Edison and Pacific Gas & Electric.

According to the U.S. Energy Information Administration, the average retail price for electricity in January was 10.27 cents per kilowatt-hour, nationally. California’s price was 15.23 cents, seventh-highest in the country.

An annual report from the CPUC said the system average rate for SDG&E was 22.5 cents per kilowatt-hour, compared to 14.61 cents for Southern California Edison and 16.27 cents for PG&E.

SDG&E officials have cited a number of reasons why its rates are higher. Among them:

SDG&E’s customer base of 3.6 million is much smaller than Edison’s base of 15 million and SDG&E has fewer industrial customers than PG&E and Edison. That means a smaller base to absorb costs.

It’s more expensive for utilities to make repairs to equipment that is underground and SDG&E has about 60 percent of its circuits and wires below ground, compared to the industry average of about 40 percent.

Or you can avoid the high usage charge by switching to a Time of Use pricing plan. The more electricity you use when the state’s power grid is at its peak, the more you pay. Conversely, use electricity when demand and energy prices are low, you pay less.

The peak hours for SDG&E customers run between 4 p.m. and 9 p.m.

Under Time of Use, there is no dreaded high usage charge but the baseline allowance is still intact, so households should be vigilant about not going over the 130 percent threshold.

SDG&E also offers a Level Pay plan. It doesn’t reduce the overall amount a customer pays but it averages out the payment over a three-month period so customers avoid big swings in monthly bills.

Gary Ackerman, former executive director of the Western Power Trading Forum, an organization based in Sacramento whose 90 members in the West buy and sell power, said higher utility bills are also due in part to mandates imposed by California policymakers.

“The cost of these renewable mandates, these storage mandates and mandates in general cause huge distortions and costs that people don't anticipate,” Ackerman said. “They don't anticipate them and they don't understand them. But they sure as hell pay for them.”

“We’re integrating more renewable energies and we’re making these investments to protect our communities,” Jones said. “There’s a lot of value that goes into our customers when they are paying their bills. It’s really helping our region move forward, not just SDG&E.”

Customer complaints about pricing may accelerate in the near future, though.

The utility estimated a typical residential customer using 500 kilowatt-hours of electricity each month would see an increase of $6.13, and a typical customer using 25 therms of natural gas would spend $7.57 more on a monthly bill.

Silvestro has made her own decision. She and her husband signed a lease with a solar company to put up a photo-voltaic system on their roof.

“I can’t wait ‘til we get hooked up,” she said.

CAPTION

Hundreds of San Diego hotel workers marched in downtown San Diego to pressure Marriott hotels to improve pay and working conditions for low wage workers.

Hundreds of San Diego hotel workers marched in downtown San Diego to pressure Marriott hotels to improve pay and working conditions for low wage workers.

CAPTION

Hundreds of San Diego hotel workers marched in downtown San Diego to pressure Marriott hotels to improve pay and working conditions for low wage workers.

Hundreds of San Diego hotel workers marched in downtown San Diego to pressure Marriott hotels to improve pay and working conditions for low wage workers.

CAPTION

The Supreme Court on Monday struck down a federal law that bars gambling on football, basketball, baseball and other sports in most states, giving states the go-ahead to legalize betting on sports.

The Supreme Court on Monday struck down a federal law that bars gambling on football, basketball, baseball and other sports in most states, giving states the go-ahead to legalize betting on sports.

CAPTION

Viasat is a global communications company working to connect the unconnected throughout the world. As part of our mission, we're bringing low-cost, high-speed satellite internet to rural towns throughout Mexico. We believe that everyone, everywhere deserves the opportunity to add their voice to the global conversation. (Courtesy of Viasat)

Viasat is a global communications company working to connect the unconnected throughout the world. As part of our mission, we're bringing low-cost, high-speed satellite internet to rural towns throughout Mexico. We believe that everyone, everywhere deserves the opportunity to add their voice to the global conversation. (Courtesy of Viasat)

CAPTION

San Diego has agreed to sell 16 lots in Nestor for $1 each, in the pursuit of affordable housing. The nonprofit San Diego Community Land Trust plans to build three and four-bedroom homes there for people with moderate incomes. That means a family of five with an income of up to $102,750.

San Diego has agreed to sell 16 lots in Nestor for $1 each, in the pursuit of affordable housing. The nonprofit San Diego Community Land Trust plans to build three and four-bedroom homes there for people with moderate incomes. That means a family of five with an income of up to $102,750.

CAPTION

Toys R Us still sells about 20% of the toys bought in the U.S., according to an analyst at Jefferies LLC.

Toys R Us still sells about 20% of the toys bought in the U.S., according to an analyst at Jefferies LLC.